First of all, dump the Turbo Tax software - use HRB online or the HRB software you buy in the store. Or best yet, call your local H&R Block and make an appointment to speak with a tax professional. We understand Schedule C's and can show you how to properly fill out the form. (Do a search through this group, there are other similar tax-related discussions.) Many people don't carry inventory but if you do, you count the bottles and their value and that is your ending inventory. Then, like Al said, use that same $ number for beginning inventory on next year's return. (BTW if you don't hold inventory and if you don't have a loss, you can probably use a Schedule C-EZ.) ANY income you earn from your business must be reported on a Sched C, whether or not you receive a 1099-MISC from the company. You'll only get one of those if you earned $600 or more. To figure your business deductions, count everything that is "ordinary and necessary" for running your business. Business cards, vendor events, etc. can go under advertising. If you use your car to drive to a vendor event, customer's house or a doTERRA class, keep track of the mileage. You'll want to use "standard mileage rate" as opposed to actual expenses. There are other categories for expenses but most of them you'll never use. Schedule SE has the calculations for Self-Employment tax. Most software will do this automatically. If this is your first year preparing business taxes, it is worth the money to go to a professional. A tax pro can explain all of this and more. (Plus at HRB you'll get their guarantees.) You'll be able to do your own taxes next year if you choose. What I have seen in this group and on this post that I don't get at all is the people who mention being taxed differently depending on whether the oils are for personal use or not. In the USA you are taxed a sales tax based on your location. At least that's what I always thought.
On Monday, February 18, 2013 1:35:51 PM UTC-5, Becky Duncan wrote:
\How are we supposed to treat DoTerra income on our federal tax returns?--
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